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'Net rally continues
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July 1, 1998: 6:29 p.m. ET
Netscape, DoubleClick lead march as Nasdaq ends session up 20 points
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NEW YORK (CNNfn) - The high-flying Internet stocks continued their upward march Wednesday, helping the Nasdaq continue its winning ways.
The Nasdaq Composite ended the session up almost 20 points to 1914.16 led by strong finishes from Netscape Communications Corp., Internet ad firm DoubleClick Inc. and 'Net bookseller Amazon.com.
Netscape (NSCP) ended the session up 8-5/8 to 30-11/16 on continued speculation the Internet software firm will soon announce a partnership with a major media company.
Some of the companies analysts view as leading candidates include CBS Corp. (CBS), Viacom (VIA) and Time Warner Inc. (TWX), parent of CNNfn.
In an interview with Reuters news service, Netscape Vice President Mike Homer confirmed talks were ongoing, but he would not narrow down the field of possible candidates.
Steve Sigmond, technology analyst at Dain Rauscher Wessels, attributed Netscape's stock climb to the fact that the company is more attractive now that Internet stocks are getting more exposure.
He said Netscape's efforts to broaden out its highly-trafficked Netcenter Web site are also helping the stock. He estimates Netcenter is currently bringing Netscape $500 million in annual revenue.
Amazon.com Inc. (AMZN) added 14-3/8 to 114-1/8 on no news other than strength in the sector.
Philip Leigh, vice president of Internet investment research, a St. Petersburg-based research firm, told Reuters one source of its recent gains appear to be short sellers unloading their positions.
DoubleClick (DCLK) rocketed 14-5/16 to 64 on no apparent news, leading Nasdaq stock market officials to request that the company issue a public statement specifying any developments that may be behind the unusual activity in its stock. Nasdaq officials said DoubleClick refused to comment on the activity.
The company was recently cited in a study as being the third most popular Web site behind Netscape and Yahoo!.
Shares of cable Internet provider @Home Corp. (ATHM) added 6-3/16 to close at 53-1/2. The company Tuesday announced 10 new distribution deals that will add an estimated 10 million homes.
Another strong Internet gainer was provider EarthLink Network Inc. (ELNK) which shot up 10-1/4 to 87 after announcing a 2-for-1 stock split.
Search engines Excite Inc. (XCIT) and Lycos Inc. (LCOS) both turned in strong finishes. Lycos closed up 6-5/8 to 82, setting a new record high. Excite, which announced a stock split last week, continued its winning ways. Shares ended up 6-7/8 to 100-3/8.
In news after the bell, semiconductor equipment company KLA-Tencor Corp. warned Wednesday its fourth-quarter profits will be below analysts' expectations.
KLA (KLA) shares ended up 1/16 to 27-3/4. Trading was halted in after-hours.
The company expects revenues to decline 10 percent from its fiscal third quarter ended March 31. Officials plan to reduce spending to help compensate for the revenue dip.
KLA-Tencor is scheduled to report fiscal fourth quarter and year-end results July 28.
Analysts are currently forecasting a 34-cent profit for the quarter.
For more information on technology stocks, tune to CNNfn's "Digital Jam" weeknights at 7:30 p.m. and 11 p.m. Eastern on CNNfn, the financial network.
--by staff writer Cyrus Afzali
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